Ideanomics to invest more in battery-powered heavy duty truck sector

25 Oct, 2019 | posted in: News | 0
Ideanomics to invest more in battery-powered heavy duty truck sector

Mobile Energy Global (MEG), an Ideanomics division that provides marketing, tech, financial and capital services to the energy vehicle industry, has announced it is expanding operations in the heavy truck category as it continues to develop ways in which the commercial industry can reduce pollution and reach a goal of net zero carbon emissions. Ideanomics envisions a near future in which the heavy duty truck market is dominated by electric vehicles. This mode of thought is reflected by the numerous prototypes currently being tested by some of the commercial vehicle industry’s biggest players, including Volvo and Freightliner.

Ideanomics chairman, Dr. Bruno Wu, spoke of the company’s decision to devote more time and energy to this sector, explaining that it makes good business sense:
“After in-depth conversation and research, conducted by MEG and our partners, with two of China’s leading mining provinces, Inner Mongolia and Yunnan, we have determined that they have a combined sales target for heavy trucks and the required batteries of approximately US$14 Billion (RMB100 Billion) over the next three years. This is exactly the type of market at scale that our MEG group brings for the benefit of our shareholders and consortium partners.”

Despite considerable effort over the past few years, most attempts to develop diesel engines that are both low-emission and cost-efficient have come up short. Ideanomics’ optimism, however, stems from the major advances in battery technologies. Company CEO Alf Poor said:

“Closed work environments, such as mining, shipping ports, and airports, are an interesting market sector for MEG, due to their uniqueness, size, and scale. Strategic planning discussions with several provinces has revealed an opportunity that MEG is perfectly positioned for in terms of servicing heavy truck fleet operators, whether state-owned or private.

“If you combine the efficiency of charging and the reduced maintenance overhead of EV heavy trucks, it’s a compelling financial proposition versus the current refueling and maintenance costs of their combustion engine counterparts. These types of benefits, coupled with our innovative financing programs for both truck and battery, means significant savings for heavy truck fleet operators – even before consideration of environmental factors for the rural environments where mining and other heavy industry takes place.

“We anticipate our heavy truck activities to begin in Q2 of 2020 and, in the meantime, we will be working with our partners to develop and deploy the heavy truck program in such a way that it allows MEG and our partners to repeat the success of this new division in other provinces and outside of China.”

Headquartered in New York, Ideanomics also has offices in Beijing, China.